News Hub: After Bankruptcy, Some Firms Fly

Mike Spector discusses once-forsaken firms under bankruptcy protection that are now looking more attractive, generating recoveries for stakeholders unheard of a year ago.

This transcript has been automatically generated and may not be 100% accurate.

... while ... job where Mike Spector to this end now the mornings are ... when you are all over the bankruptcy be an interesting thing in your story in The Wall Street Journal this morning is the fact that this is not the death knell for companies that are an estimate was ... that it was a year ago and now there are some signs that the people are getting some money and read what's really going on so notwithstanding the recent market volatility relief that the market's roaring back in credit markets are open and corporate earnings are better ... than the thing is happening is usually in bankruptcy know these companies going in they can repay their debts there's a pecking order bank's bondholders shareholders ... usually shareholders are wiped out the kidnapping but now we see a lot of shareholders fighting back this coming is doing better to stay on ... auto parts supplier who write the novel General Growth the notice was in the midst of a huge bidding war to finance its bankruptcy exit plan and its stock when it went into bankruptcy one point was around sixty cents ... as trading above fourteen dollars ... and sixteen or seventeen ... cents down you can guess where this town is another battle with shareholders net ... and no it's not clear that the shareholders wonderful morning in the end but what's unique that we haven't seen it recently as ... these guys are really putting up a fight in the form of equity committees in bankruptcy and ... now we're having a real contentious hearings in court over confirmation of bankruptcy plans that were striking up a few months back to take to the monsters in these plans to get into confirmed they were struck back with a guide to some degree it is overturning power to shareholders or is it a real eye care Medicine and were a little bit that this is because of the Highlands in these companies and speculate a way to Medicare may be an opportunity for me make some money yet while U know ... far be it for me to say that we want to speculation on Wall Street ... I think I'd for sure I mean you know a lot of these ... to be fair a lot of these sites are being driven in part by some aspect in addition you just mentioned but ... at the same time U now ... be seen as speculative bets would have been made in oh three months ago six months ago and now you know people are piling into debt to equity in the end of the last word we have to really have good analysis of the company because every bankruptcy is unique in General Growth Leaving is in sync as Bill Ackman ... really believe that the case almost nine months before why if he had some value but that's not the one true for pre bankruptcy situation ... and I would imagine that a lot of these buyers of distressed the virus can do for the average investor ... companies are not bankrupt and good profits are probably still hundred and eighty one enacting real collector just to wrap up by what we have here isn't a lot of these companies to an end it was the financial crisis the frozen credit markets you know the company is now we're not so terrible companies with bad balance sheets that the force in the bankruptcy court ... to general credit him as an intrinsic value they just couldn't get the restructuring done in a beaten down to the party can rely now looking much better ... I might think slots is ...